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2018 (10) TMI 783 - AT - Income TaxDeduction u/s 80IA(4)(iv) - raising of additional claim - additional ground seeking claim of deduction of entire profit generated from windmill power project without reducing notional brought forward losses and depreciation - Held that:- It is well settled that the appellate authority is not precluded from adjudicating the additional claims of an assessee regardless of whether the return was revised or not. The Revenue is under duty to assess the true profits of an assessee and cannot take advantage of the ignorance of the assessee on the provisions of the Act. Thus, the action of the CIT(A) to this extent requires to be set aside and additional claim of the assessee amounting to ₹ 7,35,01,934/- requires to be entertained. We notice that the quantification aspects of additional claim flowing from notional set off / carry forward of losses of earlier years from eligible profits has not been examined by the authorities below. Accordingly, we set aside the issue to the file of the AO for the limited purposes of determination of correct quantum of deduction to be computed without setting off any notional losses of the windmill power project pertaining to the earlier assessment years as discussed. AO shall allow enhanced deduction under s.80IA(4) of the Act as eligible to assessee in accordance with law regardless of claim made by the assessee in this regard in its return of income. Ground No.1 of the assessee’s appeal is allowed for statistical purposes. Addition on account of differences in the closing balances of one of its party namely Associated Road Carriers Ltd. - Held that:- In the course of hearing, the learned AR for the assessee failed to support the aforesaid ground. A perusal of the order of the CIT(A) gives the impression that the CIT(A) has approached the issue correctly and in right perspective. Therefore, without reiterating the observations of the CIT(A) , we find ourselves in agreement therewith. - Decided against assessee.
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